Chapter 1 Introduction to Business Flashcards
What and who is the social arrangement made of?
Individiuals together for a purpose
What is the collective goal of the social arrangement?
To work towards the organisations objective
How can the performance be controlled to achieve the goal?
Performance is measured and relevant action is taken
What are the boundaries for the orgnisation distinquishing from its envirionment
Physical (buildings, fences)
social (code of conduct, ethics, principles and cultures)
What are the difference between each organisation?
Size, ownership, legal status, activties, access to finance, technology
Which organisations are orientated to makeing profit and what are the primary objective?
Objective: maxmise owner wealth through
- sole traders
- partnerships
- Ltd
- Plc
which organisations are orientated for non profit and what are the primary objective
Objective: maximise benefits of the beneficary
- public sector
- charities
- clubs and assocations
- Prof. bodies
- trade unions
What is the mission?
General type of objective; an expression of raison d’etre (reason for existence)
What is the mission statement what should a successful one contain?
Written communcation of mission to internal and external stakeholders
- purpose - why exist and what we are to deliver to stakeholders
- strategy - the rescources, competencies and generic strategy
- policies - standards and behavioural patterns adopted to the org.
- values - beliefts the managers and employees share
What is the structure of the mission?
Why org exist? The vision for future of the org. Aims Objectives Plans Standards and targets
What does the acronym SMART stand for and what does each letter stand for?
Specific - clear and easy to understand statement
measureable - success or failure can be quantified
achievable - pointless setting unachievable objetives
relevant - appropriate to mission and stateholders
timed - timed period to achieve
Once understood for NNFP and NFP primary objectives what are the secondary objectives?
Market standing Innovation Productivity Staff development Corporate responbility
What other strategies can be done aside to profit maximisation?
Profit sacrificing - satisfactory profits
revenue maximations - fous on increasing sales rather then profit
What does plans outline for a business?
the action that should be taken to achieve operational objectives?
What are the standards and targets for org.? give example
The desired level of performance e.g.
- physical standards (kg of resources used per product
- cost standards (cost per kg bought)
- quality standards (no. of faulty products)
